The rise in LNG fuel prices during the week of September 7 to 11, 2026, significantly increased the freight rates of clean tankers using LNG compared to traditional rates. These changes reflect the sensitivity of fuel prices in alternative fuel vessels and have a direct impact on the economics of maritime travel.
Analysis of LNG Tanker Freight Rates
The freight rates of clean tankers using LNG are the estimated costs of transporting cargo on tankers that use LNG as their primary fuel. The calculation of these rates depends on the current prices of LNG fuel. During the mentioned week, the sharp increase in LNG prices, along with rising Worldscale assessments on several shipping routes, placed LNG equivalent rates significantly higher than traditional rates.
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These changes were particularly evident on the Gulf-Japan routes, including the Jubail-Chiba, Ruwais-Yokaiichi, and Ras Tanura-Yokohama routes, where LNG equivalent rates increased by 33%, while conventional rates only increased by 25%.
Details of Daily Rates and Market Impacts
The base LNG rates from S&P Global Energy on the Jubail-Chiba route rose from $36.66 per metric ton on September 7 to $38.89 per metric ton on September 11. During the same period, the daily Worldscale assessment also increased from w520 to w650.
In the East Suez, VLCC freight rates increased on September 7 due to tight loading lists in the Gulf of Oman and urgent needs. Stronger rates in the Atlantic have also bolstered owner sentiments, and further upward pressure in the market is expected.
However, relevant sources attribute these increases to a shortage of urgent loadings rather than immediate concerns about the Strait of Hormuz. Increasing tensions in the Gulf and the potential emergence of new cargo demand could add to freight rates.
On the Mediterranean-Mediterranean benchmark route, LNG equivalent tanker rates also increased by 15%, reaching $20.85 per metric ton on September 11 on the Aliaga-Genoa route.
Volatility of LNG Fuel Prices
LNG fuel prices significantly increased during the mentioned week. Fuel prices in Singapore rose from $1410 per metric ton on September 7 to $1537 per metric ton on September 11. LNG fuel prices in Rotterdam also increased from $1403 per metric ton on September 7 to $1561 per metric ton on September 10, then decreased to $1522 on September 11.
This price increase has continued for five consecutive weeks and follows a stronger Dutch TTF natural gas contract this month. The rise in LNG fuel prices in Singapore has been less than in Rotterdam, leading to a reduction in its premium compared to Rotterdam.
